LAW/531
The Legal System and ADR Analysis
Topic:
State level business dispute
Introduction / Purpose
Business conflicts are part of standard business operations, and the business needs to focus on utilizing the most efficient way to resolve the conflict. The failure to complete contractual obligation is categorized as a breach of contract which can be resolved in the court system. In order to avoid extensive expense associated with the traditional court case resolution, the most efficient ways for business to handle disputes is to use the Alternative Dispute Resolution (ADR) method.
Case Scenario
The following scenario demonstrates the breach of contract between two parties. John Smith is a businessman who purchased a piece of land that includes a building; the perfect site to set up his business. The building needs to be repaired and remodeled to fit Mr. Smith’s new business standards and be in compliance with the state laws. Mr. Smith hires a local contractor, ABC Remodeling Services, to do the work. They both met to talk about the work the building needs and signed a contract agreeing on the cost of the project and the time it will take for completion of the project. Since Mr. Smith is renting a location, he indicates that the work needs to be done in a timely manner and within budget.
The contractor indicates that the work will last for about six weeks, and no additional funds will be needed. However; the contractor’s crew starts the work in the building three weeks after the agreed date and after eight weeks later the work is finished only about 50 percent. In addition, the work is of poor quality as well as the materials used. Mr. Smith tried to contact the contractor but failed to receive any answer on the project.
Recommendations
Although most businesses would attempt to resolve the conflict in court, it is in the best interest to both parties, due to lack of resources, to find a solution
References: Cheeseman, H. R. (2013). BUSINESS LAW: Legal Environment, Online Commerce, Business Ethics, and International Issues (8th ed.). Retrieved from The University of Phoenix eBook Collection database.